OFAC Regulatory Provisions - 31 CFR § 515.534 - Negotiation of, and entry into, contingent contracts relating to transactions prohibited by this part.

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Try typing your search term (“ordinarily resident,” “new debt,” or something else) in the “Find a Search Filter” box at the top of the page, and the corresponding “Key Legal Issues” check box will pop up instantly, if one exists. Once you check the box (e.g. “new debt,” with ~55 results), you can always use the text string filtration function to further refine your search (e.g. by typing “invoice” and narrowing the ~55 results to ~10).

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TURBOFAC Commentary (296 words)

Notes:

1) Neither this provision nor similar GLs authorizing executory contracts have been the subject of substantive public guidance from OFAC. The illustrative list of types of contracts/agreements covered is the same as that seen in, e.g., Iran General License (No. I).

2) As with the Iran , the provision is noteworthy insofar as it describes a list of agreements otherwise prohibited but-for the GL, which in turn informs the scope of what would be prohibited in sanctions programs without this GL. (Compare FAC NO. 142787, comments thereto), General Note on the Blocking of “Contracts” and the Determination of Persons Having an “Interest” in “Contracts.”

3a) Provision amended on 9-24-2020 to delete the following text in light of the amendment to 515.564(a)(2): “[See…]§515.564(a)(2) for a general license authorizing travel-related and other transactions incident to attending or organizing professional meetings in Cuba, which include professional meetings relating to the negotiation of contingent contracts authorized by this section.”

3b) Provision amended on 6-8-2022 to restore the language deleted on 9-24-2020.

4) Apart from the 515.533-related transactions explicitly addressed in the Note to §515.534, there may be other scenarios in which travel related to "the negotiation of contingent contracts" is authorized by travel GL referenced in 515.560 (i.e. the standard "twelve categories of travel").

5) In re: the scope of "negotiation" that falls within the scope of 515.201 such that this license would be necessary, see Case No. CU-2016-332180-1, suggesting a “bona fide negotiations” standard used to distinguish “prohibited negotiation” from “mere discussions” outside the scope of OFAC’s blocking prohibition, and see more generally section 6 of Pre-Transactional Activities System Note.

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31 CFR § 515.534 - Negotiation of, and entry into, contingent contracts relating to transactions prohibited by this part.

TURBOFAC Commentary (296 words)